Analyzing HealthEquity (HQY) and Veeva Systems (VEEV)
HealthEquity (NASDAQ: HQY) and Veeva Systems (NYSE:VEEV) are both mid-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
91.0% of HealthEquity shares are held by institutional investors. Comparatively, 71.4% of Veeva Systems shares are held by institutional investors. 29.0% of HealthEquity shares are held by company insiders. Comparatively, 19.2% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
HealthEquity has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
This table compares HealthEquity and Veeva Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares HealthEquity and Veeva Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HealthEquity||$202.47 million||14.88||$61.84 million||$0.67||74.33|
|Veeva Systems||$617.44 million||13.89||$154.55 million||$0.79||77.22|
Veeva Systems has higher revenue and earnings than HealthEquity. HealthEquity is trading at a lower price-to-earnings ratio than Veeva Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for HealthEquity and Veeva Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HealthEquity currently has a consensus price target of $57.00, suggesting a potential upside of 14.46%. Veeva Systems has a consensus price target of $65.82, suggesting a potential upside of 7.90%. Given HealthEquity’s stronger consensus rating and higher probable upside, equities analysts plainly believe HealthEquity is more favorable than Veeva Systems.
HealthEquity beats Veeva Systems on 10 of the 14 factors compared between the two stocks.
HealthEquity Company Profile
HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.
Veeva Systems Company Profile
Veeva Systems Inc. (Veeva) is a provider of cloud-based software solutions for the global life sciences industry. The Company offers solutions for a range of requirements within life sciences companies, including multichannel customer relationship management, regulated content and information management, master data management and customer data. The Company offers solutions to areas, including the Veeva CRM family of applications for multichannel customer relationship management to enable coordinated and personalized customer engagement through multiple touch points; Veeva Vault for regulated content management and information management solutions to enable the management of content-centric processes; the Veeva Network master data management solutions for the management of customer master and product master data, and Veeva’s data and data services offerings, including Veeva OpenData for customer reference data and Veeva KOL Data for data.
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